Fiscal sustainability is a good starting point for the discussion of growth-oriented fiscal policy because unsustainable public finances inevitably lead to crises. This being said, the work program on growth-oriented fiscal policy goes beyond fiscal sustainability: it also includes issues of tax policy and development, composition of public expenditure, sub-national finance, and the role of fiscal policy in dealing with climate change.
Fiscal Policy: PRMED undertakes work on debt, fiscal policy and growth in Middle-Income Countries (MICs); tax policy and the efficiency of public expenditure policy; climate change, and the role of fiscal policy in managing volatile oil revenues.
Fiscal Sustainability: PRMED has developed comprehensive toolkits for fiscal sustainability in the context of uncertainty. These tools allow for explicit analysis of the effects of uncertainty not just through scenario analysis, but also through full stochastic simulations.